Correlation Between Guangzhou Automobile and Harbin Hatou
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By analyzing existing cross correlation between Guangzhou Automobile Group and Harbin Hatou Investment, you can compare the effects of market volatilities on Guangzhou Automobile and Harbin Hatou and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangzhou Automobile with a short position of Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Harbin Hatou.
Diversification Opportunities for Guangzhou Automobile and Harbin Hatou
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Harbin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment and Guangzhou Automobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangzhou Automobile Group are associated (or correlated) with Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Harbin Hatou go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Harbin Hatou
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to under-perform the Harbin Hatou. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Automobile Group is 1.5 times less risky than Harbin Hatou. The stock trades about -0.02 of its potential returns per unit of risk. The Harbin Hatou Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Harbin Hatou Investment on November 2, 2024 and sell it today you would earn a total of 128.00 from holding Harbin Hatou Investment or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Harbin Hatou Investment
Performance |
| Timeline |
| Guangzhou Automobile |
| Harbin Hatou Investment |
Guangzhou Automobile and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Harbin Hatou
The main advantage of trading using opposite Guangzhou Automobile and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Harbin Hatou can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Guangzhou Automobile vs. China National Software | Guangzhou Automobile vs. Linkage Software Co | Guangzhou Automobile vs. Glodon Software Co | Guangzhou Automobile vs. Daoming OpticsChemical Co |
| Harbin Hatou vs. Dhc Software Co | Harbin Hatou vs. Glodon Software Co | Harbin Hatou vs. Lander Sports Development | Harbin Hatou vs. Linkage Software Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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